Solana’s price has surged by 10.1% over the past week and 70.8% this month, indicating strong buying momentum in the market. The Relative Strength Index (RSI) is above 60, suggesting a bullish trend, but it’s approaching the overbought zone, which could lead to a potential short-term overvaluation and a market correction.
The upward movement of key moving averages, such as the 50-day Simple Moving Average (SMA) and the 20-day Exponential Moving Average (EMA), further supports Solana’s bullish sentiment. The $42.2 level is an important support level, while the $60 mark acts as a significant resistance.
Breaking above the $60 resistance with high trading volume could signal further bullish momentum. However, being in the overbought territory may result in selling pressure and profit-taking, potentially causing a price correction. A decline below the moving averages, especially the $42.2 level, could indicate a sentiment shift and a potential trend reversal.
Source: CRYPTO BRIEFING
